Eyes on bank earnings, Microsoft/Activision deal
U.S. stock markets look likely to open marginally higher on Wednesday after a sharp selloff on during the previous session, as climbing Treasury yields and several company earnings spooked traders.
A mega deal was also in focus, following Microsoft (NASDAQ: MSFT)’s announcement that it had reached an agreement to acquire Activision Blizzard (NASDAQ: ATVI) in an all-cash transaction worth $68.7 billion.
Earnings season continues today, with Bank of America (NYSE: BAC), Morgan Stanley (NYSE: MS), Procter & Gamble (NYSE: PG), UnitedHealth (NYSE: UNH), and United Airlines (NASDAQ: UAL).
SoFi surges after winning approval to become a full-service national bank
SoFi Technologies (NASDAQ: SOFI) stock ticked up in extended trading hours on Tuesday after the company received approval to create a national bank.
The fintech firm announced on Tuesday that it received conditional approval from the Office of the Comptroller of the Currency (OCC) to become a full-service national bank, as long as the new entity doesn’t engage in any crypto-asset activities or services.
SoFi offers banking products including debit cards, loans, and cash accounts. The company acquired Golden Pacific Bank as a path to getting a full-fledged banking license.
Shares of SoFi jumped 19% to $14.40 in the after-hours trading session.
Crude futures soar amid geopolitical tensions
Meanwhile, crude futures continued their upward climb on Wednesday, amid growing concerns that tensions in Europe and the Middle East hurt energy markets by denting supplies from major crude producers such as Russia and the United Arab Emirates.
U.S. and European officials have ramped up economic and diplomatic pressure on Russia in recent days, amid fears that Moscow is planning to invade Ukraine.
At around 6:05 a.m. ET, U.S. West Texas Intermediate (WTI) crude futures were up 95 cents, or 1.12% to $85.78 a barrel. Global Brent crude futures rose 77 cents, or 0.88% to $88.28 a barrel.
